Economic Criminal Law

We advise and defend companies, members of the management, executives, and consultants in cases of economic criminal allegations and administrative investigations. In crisis situations, a coordinated approach is crucial — criminal defense alone is insufficient.

The First Hours

A search does not announce itself. Those who improvise in this situation forfeit rights that cannot be reclaimed later. Therefore, several points need to be clarified in advance: Who in the company will be informed? Which rooms and data sets are affected? Is the search warrant handed over and read before access is granted? And which documents are protected from seizure?

We accompany searches on-site, object to the seizure where it exceeds the warrant, and document the process. An objection does not prevent the removal but keeps the path to judicial review open.

What Companies Face

German law does not recognize the criminal liability of legal entities, but there is the association fine: If a managing person violates duties, a fine can be imposed on the company itself. Additionally, there is the violation of supervisory duties — this applies even if no one from the management acted, but reasonable supervisory measures were neglected.

Economically, the confiscation often weighs heavier: What has been gained through the act can be confiscated, generally without deducting expenses. In cases of procurement violations, the exclusion from public contracts is added, and for certain offenses, the entry into the competition register.

Typical Allegations

Breach of Trust. The most difficult allegation, as it relates to business decisions. The line between acceptable risk and negligent asset management is crossed when a decision is made without adequate information or outside the company's interest. Documented decision-making bases are the best defense here — and must be established before the decision, not afterward.

Corruption in Foreign Business. Payments to officials are also punishable if made abroad and appear tolerated there. Acceleration payments are not privileged under German law. Intermediaries and consultants, whose compensation bears no relation to the recognizable performance, are often critical.

Tax Evasion. The transition from tax audits to criminal proceedings is fluid. As soon as there is a preliminary suspicion, the obligation to cooperate in tax matters ends — this change is often noticed too late in practice.

Sanction and Export Violations. Those who export goods or technology without the required permit risk criminal proceedings and fines. In supply chains with intermediaries, the end use is often not immediately recognizable.

Internal Investigation

Before reporting or in parallel with the investigation, the question arises as to what will be clarified internally. An internal investigation creates clarity and can have a mitigating effect on sanctions — but it also generates documents that can later be seized. Therefore, we plan in advance who will be interviewed, how employees will be informed about their rights, and how the results will be documented.

In labor law, the employee is obliged to provide information about official matters but does not have to incriminate themselves. Managing this conflict properly determines the usability of the results.

Defense of Multiple Parties

In corporate proceedings, several individuals are often in focus at the same time — the company, a board member, a department head. Their interests initially run parallel and can later diverge: What exonerates one may burden another. A defense from a single source is therefore not permissible in every constellation and not always sensible.

We clarify the distribution of roles at the beginning and coordinate the defense strategies where legally possible. The question of whether the company will cover the defense costs of a management member and whether a liability insurance for financial losses will step in should also be addressed at the beginning — not at the end.

Related to This Consultation

An economic criminal proceeding has far-reaching implications: It affects management liability, labor law consequences for those involved, supervisory reporting obligations, and communication with banks and business partners. We bring these strands together and coordinate them with compliance consulting to create a robust structure from the processing.